Home values expected to grow in 2014

Home owners experienced a double-digit growth in value during the first half of 2013, which slowed to a more historically sustainable level in the second half of the year. It appears that the smaller, but steady, increase will continue in 2014.

“I think there is still momentum,” explained Chris Hasvold, owner/broker of Coldwell Banker Village Properties. “It was actually a more active holiday season in real estate compared to the last few years, which I think bodes well for 2014.”

Hasvold said values increased in the first six months of 2013 by 22 to 23 percent, then tapered down in the second half to four to five percent.

“Overall, values ended up 20 percent higher last year,” he said. Hasvold calls a steady four to five percent increase in value “a sustainable level.”

“Historically, if you look back 60 years, three to five percent increase per year is sustainable, if you take out the ups and downs.”

The reason values escalated by the double digits in early 2013 was because of a shortage of inventory, said Hasvold.

“As prices came back, more people got out of underwater and were able to put their homes up for sale; inventory doubled in the last half of the year so increases leveled out,” he said. “At that point the sales rate began to stay constant throughout the remainder of the year.”

Hasvold said he believes Fallbrook will be in line with what national real estate forecasts are for 2014

“It looks like 2014 will continue a sustainable appreciation factor; a healthier market; that is really a good thing,” said Hasvold. “We can’t have those wild fluctuations; wild increases lead to wild declines.”

Debbie is the managing editor of the Village News. A multiple award-winning writer of 35 years, her expertise is in reporting on breaking news, crime, and legal matters.

4 Responses to "Home values expected to grow in 2014"

observant January 9, 2014 at 5:41 pm

Do the values go up or does the currency they are priced in go down?

If I purchase a house and sell it for twice as much 20 years later but everything else doubles in price too, doesn’t that mean I simply kept my purchasing power? Did I really make money? What if I have to pay a commission and taxes on my "profit?"

Beware depreciating currencies. They can trick you into thinking your’re making more money than you actually are.

…….. Hasvold got it right. The increase in the early half of 2013 was attributed to a lack of inventory and the Feds buying our debt to maintain low interest rates. Those levels of appreciation are not sustainable. Among other things, the Fed has already said that they will reduce the amount of money they print to buy down our debt and that will lead to higher interest rates. Most industry publications say that 4-5 % appreciation nationwide is what we can expect for the next 5 years.